European Equity

A focus on rigorous fundamental research to identify European businesses with strong and sustainable levels of profitability and low capital intensity.

Using a fundamental, bottom-up analytical approach, we construct high conviction portfolios of quality companies across Europe. We aim to invest for the long-term by focussing on sustainable profitability and growth.

The team’s philosophy is based on the following three principles:

Scepticism: Multi-disciplinary deductive approach

High conviction: In-depth research and continuous re-examination

Focus: Long-term shareholder value creation and compounding

We focus on companies with long-term sustainable profitability and economic growth potential. We integrate material ESG factors into investment decisions, engage on material ESG issues, and convey our views through thoughtful proxy voting.

Companies we consider to be attractive investments display the following characteristics:

Persistence: Strong and consistent operational performance

Capital allocation: Low capital intensity (capital light) which translate substantial cash generation

Competitive advantage: Higher value creation than peer companies

We integrate risk management at a granular level into our investment process. The team’s portfolio engineering is a valued asset which, when interlinked with our investment philosophy, empowers the team to have a differentiated approach. We use this risk management approach to analyse how we utilise risk and ensure it is in the most appropriate manner, as well as creating proprietary research and data analysis.